Consider the following case.
Mr. Ram makes a telephonic call to Mr. Shyam offering a deal on repair of his old refrigerator. The offer was heard and duly accepted by Mr. Shyam while on the phone assuming that no disturbances were caused from telephone
operator. There is no written document to Verify this offer, as it happened over telephone.
As per your assessment, will it form a part of contract? If No, why? If Yes, then which kind of contract is it?
A. No, because there is no written document to support the contract
B. No, because telephonic conversations cannot form a part of Contract
C. Yes, it can form an Express contract as the acceptance was heard clearly, though it is a phone
D. Yes, it can be a part of contingent contract
E. No, it cannot be a contract, because parties in the contracts are not in the same place
Answer: Option C
A. Expenditure for the business
B. Cost for the business
C. Gain for the business
D. None of the above
Which of these items would be accounted for as an expense?
A. Repayment of bank loan
B. Dividend to stock holders
C. The purchase of land
D. Payment of current period rent
Debit the receiver credit the giver rule for:
A. Real a/c
B. Personal a/c
C. Nominal a/c
D. None of these

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